Originally published on: September 17, 2024
Introduction:
Bitcoin made a significant move by surging to $61,000 within a short span, but traders in the derivatives market remain wary of the optimism surrounding this rally. Let’s dig deeper into why skepticism still lingers despite the upward price momentum.
Bitcoin’s Price Rally and Market Sentiment:
Bitcoin’s price surged by 6.4%, hitting $64,423.95 in under 12 hours on Sept. 17, breaking the $61,000 barrier for the first time in three weeks. Despite this bullish trend, the derivatives market paints a cautious picture, leaving investors pondering whether Bitcoin can sustain above $60,000 or slip back to the $58,000 range.
Market Influences:
The movement of Bitcoin’s price mimicked the S&P 500 index, which reached all-time highs following macroeconomic data signaling a potential 0.50% interest rate cut by the US Federal Reserve on Sept. 18. Positive figures in US retail sales and industrial production in August have helped alleviate concerns over a looming recession, especially in the consumer sector.
Market Analysts’ Perspectives:
Investors have been apprehensive about a possible economic downturn, exacerbated by inflated tech company valuations and high leverage in the financial system. However, recent economic indicators suggest a more stable outlook, easing fears of a market correction.
Derivatives Market Indicators:
Examining the BTC futures premium, which indicates investors’ sentiment through the basis rate, reveals that despite the price rally, sentiment remains neutral with a stable 6% premium. Similarly, the Bitcoin options skew metric presents a neutral sentiment, with put and call options priced comparably, indicating a lack of bias toward bullish or bearish positions.
Stablecoins Demand Indicator:
In assessing stablecoin demand in China using the USDT premium, data shows a 0.3% discount since Sept. 9, indicating investors cashing out rather than entering the cryptocurrency market.
Conclusion:
While Bitcoin remains near the $61,000 mark, derivatives data suggests that investors are treading cautiously, awaiting further market developments. As traders remain skeptical about the sustainability of the bullish momentum, the Federal Reserve’s upcoming decision on Sept. 18 looms large, impacting market sentiments and investment decisions.
Remember, the information provided in this article is for general knowledge only and should not be considered as legal or investment advice. The opinions expressed are solely those of the author and may not reflect the views of Cointelegraph.
